Clare College Financial Policies and Procedures. Expenses & Benefits. 1 P a g e

Financial Policies and s Expenses & Benefits 1 P a g e

Contents 1. Introduction 1.1 Purpose 1.2 Tax Implication of Benefits and Expenses Payments 2. General s 2.1 Claiming Expenses 3. Travel by College Employees 3.1 Travel 3.2 Definition of a Business Journey 3.3 Prior Authorisation to Travel on College Business 3.4 Private Vehicle Travel 3.4.1 Vehicle Insurance 3.4.2 Mileage 3.4.3 Travel from Home to Normal Place of Work (Ordinary Commuting) 3.5 Car Parking 3.6 Hire of Vehicles 3.7 Cycles 3.8 Taxis 3.9 Rail, Air and Sea Travel 3.10 Passports 3.11 Visa and Vaccinations 3.12 Travel Insurance 3.13 Miscellaneous Business Expenditure whilst travelling 4. Subsistence & Accommodation Whilst on Business 5. Research Costs for Fellows 6. Expenses for Non-Employees 6.1 Travel for Spouses and Family Members 6.2 Visitors Involved with Educational Activities 6.2.1 Travel Expenses for Visitors who receive a fee 6.2.2 Travel Expenses for Visitors who do not receive a fee 6.2.3 Self-Employed Visitors 6.2.4 External Examiners 6.2.5 Subsistence Payments to Visiting Foreign Academics 6.2.6 Travel Expenses for Individuals Attending Interviews 2 P a g e

7. Entertaining 7.1 Business Entertainment 7.2 Staff Entertainment 7.3 Fellows Entertainment Allowances 8. Other Benefits 8.1 Subsidised and Free Meals 8.2 Mobile / Office Telephones 8.3 Purchase of IT Equipment for Fellows 8.4 Protective Clothing and Uniforms 8.5 Use of Vans 8.6 Subscriptions 8.7 Books and Publications 8.8 Personal Purchase from College Suppliers 8.9 Eye Tests 8.10 Trivial Benefits Appendices: A Expenses Claim Form B Entertainments Expenses Claim Form C Travel and Subsistence Rates 3 P a g e

1. Introduction 1.1 Purpose This document is to explain the College policies and procedures in respect of reclaiming expenditure incurred by employees in the course of College business. Also it identifies the tax consequences of both these reclaims and other benefits that employees receive and the procedures for declaring them to ensure compliance with HM Revenue & Customs (HMRC) legislation. These policies and procedures are intended to provide a set of best practice guidelines to be followed to ensure that all employees are treated fairly. However, compliance with HMRC legislation (i.e. the reporting of all taxable benefits) is mandatory, as are any insurance requirements to ensure that the College maintains its duty of care to all its employees. The underlying intention of the policy is to reimburse employees for expenses incurred wholly and necessarily in the course of College business ensuring that employees neither gain nor lose financially and to ensure compliance with HMRC legislation. 1.2 of Benefits and Expenses Payments Any payment made to an employee that is not processed through the payroll may be regarded by the HMRC as a taxable payment in which the employee has to pay tax. At the end of each tax year (5 April) the College is required to submit a P11D form to HMRC. This form is intended to identify any tax liabilities that have not been initially accounted for through the normal PAYE payments. The College has been granted a dispensation notice from HMRC that removes the requirement to report certain expenses and benefits to them at the end of the year (these are shown in the following sections under the tax implications headings). There is also no need to pay any tax or National Insurance Contributions on items covered by the dispensation. Where a benefit is identified on a P11D form, the tax due will normally be collected by HMRC adjusting the employee s tax code in the next tax year. 4 P a g e

It is very important that the P11D returns include all benefits that have been received by employees. From time to time, HMRC conducts audits of employers (including the College) and one of the main areas checked is that of benefits and P11D declarations. This is because errors frequently arise in this area. Where an error is identified, interest and penalties are charged to the College which potentially can be very high. It is therefore essential that all employees keep to the policies and procedures laid out in this document. 2. General s 2.1 Claiming Expenses All business expenditure incurred by an employee should be claimed for reimbursement using an Expense Claim form (Appendix A) which is available from the Bursary. The Expense Claim form must give full details of the business expenditure and all supporting evidence of the expenses e.g. receipts or bills must be attached. Claims should be made regularly and within three months of incurring the expenditure. All Expense Claim forms must be signed by the claimant and authorised by their Head of Department or College Officer. No one shall authorise reimbursement of his or her own expenses. Expense Claims are paid directly into the bank account used for the payment of the claimant s salary. Claims are paid middle and end of each month. 5 P a g e

3. Travel by College Employees 3.1 Travel Employees should always choose the most cost-effective method of transport for business journeys ensuring safety and with reasonable comfort. Reimbursement will be made for the actual travel costs and associated expenses incurred wholly and necessarily in the performance of their duties. 3.2 Definition of a Business Journey To determine which journeys may be regarded as business journeys the following rules apply. A business journey is one undertaken by an employee: to carry out his or her duties for the College; or to attend training courses or conferences necessary for the performance of those duties. No reimbursement is made for travel and subsistence for private journeys (including ordinary commuting to or from work). 3.3 Prior Authorisation to Travel on College Business All business journeys should be authorised and agreed prior to travel by the Head of Department or College Officer responsible for the budget. 3.4 Private Vehicle Travel Generally, private vehicles should only be used where it is impractical to use other methods of transport or where the use of a car is more cost-effective. 3.4.1 Vehicle Insurance a) Where an employee uses their own vehicle (car, van or motorcycle) for travel on College business their insurance policy must allow for business use. b) This is because if employees travelling on College business were involved in an accident, the College could be held partly liable as if they were using the vehicle on the College s behalf. As they are at work the Health & Safety at Work Act 1974 applies. 6 P a g e

c) Without the appropriate insurance cover employees are not allowed to use their vehicle on College business or to reclaim mileage for business trips. The mileage rate paid already includes an element towards insurance costs. Heads of Department are required to check, on at least an annual basis that employees vehicles are insured for business use and employees should make a declaration stating: I confirm that my vehicle remains insured for business use, is roadworthy, fit for its purpose and continues to have a current MOT certificate 3.4.2 Mileage Allowances The College will pay a mileage allowance where an employee uses their vehicle for business travel, they are adequately insured and it is the most cost-effective means of travel taking time and other considerations into account. Claims for mileage during business journeys should be made on a mileage claim form and adequate mileage records should be maintained to support them. Current allowances are: Travel by car (irrespective of size) 45p a mile up to 10,000 miles, 25p a mile thereafter Travel by Motorcycle 24p a mile 3.4.3 Travel from Home to Normal Place of Work (Ordinary Commuting) The College will not normally reimburse the cost of ordinary commuting. Where an exception is made for an emergency call-out or a member of staff is requested to work on a weekend then the Head of Department may make reimbursement of home to work mileage. These exceptions are not classed as being business journeys and therefore the employee does not need to have a business user clause on their motor insurance policy to claim the mileage. 7 P a g e

Mileage for business journeys Exceptional home to work payments Included in the College dispensation and does not need to be reported on the P11D form Will be subject to both tax and NI. These will be deducted by payroll before payment and therefore will not need to be included on form P11D 3.5 Car Parking Where it has been agreed that the use of a car is acceptable whilst travelling on College business away from the employee s normal place of work all expenses for car parking costs incurred will be reimbursed. Any claims for parking excess charges, fines, wheel clamp unlocking etc will not be met by the College under any circumstances. Claims should be supported by receipts and included on the expenses claim form. Where a parking meter was used and no receipt is available a note to that effect should be included with the claim. Car parking charges reimbursed Provision of free parking facilities at the workplace Included in the College dispensation and does not need to be reported on the P11D form No benefit arises and therefore does not need to be included on P11D 3.6 Hire Vehicles Occasionally it may be more cost effective if there is no suitable public transport available for employees to hire a vehicle rather than claim mileage. In comparing relative costs, account needs to be taken of additional charges such as delivery, collision damage waiver and petrol. The College s motor insurance policy does not provide cover for employees driving hired/leased vehicles on College business. Therefore, additional insurance must be taken out with the hire company to ensure adequate cover. 8 P a g e

Claims for all hire costs including insurance and reasonable delivery/collection costs should be made on an expenses claim form with all receipts attached. Reimbursement of petrol costs will only be made for the business use of the hire car on production of receipts. Vehicle hire costs for business use Included in the College dispensation and does not need to be reported on the P11D form 3.7 Cycles The College does not currently pay any cycle mileage allowance None for the College; however, employees can claim tax relief on 20p per mile for all business journeys made using their own bicycle, through their own tax return. It is likely that HMRC will require individuals to maintain detailed records to substantiate such claims. 3.8 Taxis The use of taxis should only be contemplated for business travel where: there is no suitable public transport alternative for short journeys there are a number of employees travelling together and the use of a taxi is cheaper than public transport If an employee is asked to work late and they normally travel by public transport to work, the College may reimburse the employee for the cost of a taxi fare home where: the employee is occasionally required to work late (that is until at least 9pm) but those occasions are neither frequent or regular; by the time the employee can go home either public transport between the workplace and the employee s home has ceased or it would not be reasonable for the employee to be expected to use it. The taxi firms used should be ones with which the College holds an account, wherever possible, so that the College is invoiced direct for all business travel. 9 P a g e

For business journeys that are not charged directly to an account a receipt should be obtained and reimbursement can be made using an expense claim form. Taxi for business journeys Taxis for late working Taxis to attend social events As long as receipts are obtained there is no taxable benefit and it does not have to be reported on the P11D There will not be a taxable benefit provided that there are no more than 60 such events in the course of a year This is a taxable benefit and should be included on the P11D 3.9 Rail, Air and Sea Travel In all instances it is expected that the most cost effective option of travel is purchased. All receipts should be included with the expense claim form. For all business journeys by air, rail and sea All business journeys are included in the College s dispensation and do not have to be included on the P11D 3.10 Passports Employees are responsible for ensuring that they have valid passports for overseas business travel. It is generally expected that employees have passports for their own personal use, in which case the cost of the passport will not be refunded. However, if an employee has to obtain a passport solely for the purpose of travelling on College business, then the cost of the passport may be claimed. The College is not responsible for the cost of replacing lost or stolen passports. These can be reimbursed via the expenses claim form. 10 P a g e

Cost of passport This is reportable as a taxable benefit and should be reported on the P11D 3.11 Visas and Vaccinations Where employees require visa and vaccinations for overseas business travel any costs incurred will be reimbursed by the College. Reimbursement should be via an expenses claim form. Costs of visas and vaccinations for business trips These are not taxable and therefore not reportable on the P11D 3.12 Travel Insurance The College has a duty of care towards its employees and therefore has taken out an Annual Business Travel Insurance which covers all staff travelling abroad on College business. The basic terms of the insurance are below but all staff should check the policy before travelling and take all details with them when travelling: Medical & Emergency Expenses Unlimited Personal Property 5,000 Money 5,000 Cancellation 10,000 Staff on foreign travel covered by the College Annual Travel Insurance Not taxable and not reportable on P11D 11 P a g e

3.13 Miscellaneous Business Expenditure whilst Travelling Employees making a business trip may be required to spend money on business activities such as telephone calls, small equipment, books etc Claims should be made on the expenses claim form along with receipts. Miscellaneous expenses whilst travelling on business Not classed as taxable benefit if wholly for business purposes and do not need to be recorded on P11D 4. Subsistence & Accommodation whilst on Business Journeys When employees travel on business and are more than 5 miles away from both their normal place of work and home they are entitled to recompense for the meals that they purchase. This is known as subsistence and all claims must be supported by receipts. There are four different allowances and in each case the employee is entitled to the lesser of the allowance or the actual cost incurred. Part Day spanning lunch: Absent for more than 5 hours over lunchtime period Part Day spanning dinner: Absent for more than 5 hours over the evening period Part Day including lunch & dinner: Overnight: Absent for more than 10 hours but not overnight Includes breakfast as well as accommodation (higher rate applicable for the London area) For current subsistence rates see Appendix C. The maximum subsistence rates detailed include taxes (e.g.vat) and gratuities (tips). Gratuities must not be excessive: e.g.<10%, the claimant may write the amount of tip on the receipt if it does not already appear there. 12 P a g e

Adherence to Subsistence Rates The subsistence rates are reviewed and agreed annually by the Finance Committee. It is expected that individuals will make every effort to remain within the approved rates. However, it is accepted there may be occasions when it is not possible to stay within the rates and it is the intention that individuals should not suffer financial loss as a consequence of being required to travel on College business. Therefore, the rate may be exceeded in exceptional circumstances where there is no choice but to exceed the rate (e.g. there is no accommodation available within the preferred rate) or where there is a strong business reason to exceed the rates (e.g. attendance at a conference on a hotel where the rates are in excess of the set rates and it is desirable to stay there in order to foster academic relations). In such cases, evidence should be retained to support the need to exceed the approved rates. However, in interpreting the College s expenses policy, it must also be remembered that the College is a charity and a recipient of public funds, and seeks value for money in all its activities. The policy is therefore not intended to fund subsistence which might be regarded as lavish or inappropriate use of public/charitable funds. The fact that an individual may have brought particular funds into the College is not sufficient reason to justify expenditure in excess of the set rates. Hotel Accommodation Hotel accommodation should be booked prior to travel and invoiced directly to the College wherever possible. The cost of accommodation and meals should not exceed the subsistence rates (Appendix C). The employee is responsible for settling the cost of any additional items such as newspapers, laundry, minibar, movies etc prior to departure from the hotel. Accommodation Provided by Friends/Relatives It is recognised that on some occasions an employee may wish to stay with friends or relatives whilst on College business and may wish to make some financial recompense for the hospitality they have received. In such cases a payment of 25 per night may be claimed subject to prior approval by the Head of Department. Accommodation Whilst Working Abroad The rates agreed annually by Finance Committee for overnight subsistence apply to costs incurred in the UK. The rates do not apply to overseas accommodation because for some countries this would be insufficient to meet the average cost of reasonable accommodation whilst in others it would be excessive. 13 P a g e

Therefore for overseas travel, employees should book accommodation, which is roughly equivalent to 3 star level. For areas where there is deprivation or a high security risk then the rating may be increased to 4 star. Similarly for meals, employees should expect to be reimbursed for meals that are equivalent to the kind of meal that can be purchased in the UK within the rates for UK travel. A reasonable expectation of the College is that an employee should enjoy a modest breakfast, light lunch and more substantial evening meal. The College should not be expected to meet the cost of a lavish 5 course meal simply because the cost of living is low in a particular country and the meal is therefore cheap. Equally employees should not be expected to exist on meagre portions in a country where the cost of living is high. To claim, complete an expenses claim form attaching all the relevant receipts unless under 5 and no receipt could be obtained. A full explanation and agreement by the Head of Department must be attached to the claim form for recompense of the allowance if staying with relative or friends. Claims for subsistence including all supporting receipts If Head of Department authorises a claim for over 5 for subsistence not supported by a receipt All accommodation provided whilst working on business This is included in the College dispensation and therefore not reportable on the P11D This will have to be included on P11D This is included in the College dispensation and therefore not reportable on the P11D 5. Research Costs for Fellows The College may provide support for Fellows travel costs in connection with attendance at conferences and for essential research expenses including publications. For University Teaching Officers, the College expects that their Department or Faculty will be the first point of support in the form of a grant from the University travel fund or research grants. When such University sources have been exhausted, the College may grant up to 500 per Fellow in any one academic year. 14 P a g e

For Research Fellows and College Teaching Officers, the College is prepared to grant up to 1,000 in any one academic year. In exceptional circumstances, the Finance Committee will consider applications for larger grants. Any unused allowances in the preceding three years may be carried forward. Applications for all travel grants should be made to the Bursar, who will review the particulars of the trip to ensure that it meets the criteria of being wholly and necessarily incurred in the performance of their duties and research. If in excess of the limits, time should be allowed for consideration by the Finance Committee in advance of the relevant event. All approved grants must be claimed on an expenses claim form with all receipts attached. Authorised travel costs to attend a conference Authorised research travel and publication costs This is included in the College dispensation and therefore not reportable on the P11D This is included in the College dispensation and therefore not reportable on the P11D 6. Expenses for Non-Employees 6.1 Travel for Spouses and Family Members Travel costs relating to spouses and any other family members are not normally met by the College. If a spouse or family member accompanies a member of staff for personal reasons the College must not be charged more than if the member of staff travelled alone. Exceptions will only occur where the spouse s presence is in furtherance of College business and any such claim must have prior agreement and be authorised by the Bursar. Examples of when their presence is in the furtherance of College business are: The spouse has some special skill or qualification associated with the employee s job on the trip, although not necessarily full time e.g. where the spouse is a linguist and acts as an interpreter at business meetings 15 P a g e

The presence of the spouse is essential to organise a series of business entertaining occasions that the employee is required to host as part of their duties. It is not enough that they attend functions at which other guests are accompanied by their spouses The employee s health is so poor that it would be unreasonable for them to travel alone This arrangement must be authorised by the Bursar in advance of the travel and a record kept. Reimbursement is made via an expenses claim form or direct payment to the supplier as appropriate. Authorised travel costs of spouse as their presence is in the furtherance of College business Payment made for spouse in any other circumstances This is included in the College dispensation and therefore not reportable on the P11D This is a taxable benefit and must be included on form P11D 6.2 Visitors Involved with Educational Activities Sometimes visitors to the College are involved with a range of activities e.g. teaching, lecturing, coaching etc. Some visitors are paid for their involvement whilst others are only reimbursed for their travel expenses. 6.2.1 Travel Expenses for Visitors who receive a Fee for Services Where a visitor is paid for delivering a service, this is generally treated as being an employment relationship and the payment is potentially liable to tax. Any travel costs may be reimbursed gross (i.e. the actual cost plus any tax liability) in these circumstances. The payment of these travelling costs represents travel from home to work and therefore must be paid through the payroll. Visitors should be advised prior to their visit of this and agreement must be made as to whether travelling expenses will be reimbursed at cost or will be grossed up to take into account any tax liability. 16 P a g e

Any tax and National Insurance will be deducted through the payroll. Does not need to be included on a P11D 6.2.2 Travel Expenses for Visitors who do not receive a Fee This includes volunteer speakers at seminars or dinners and lecturers. They may be reimbursed their travel expenses although there is no employment relationship with the College. The reimbursement must be equal to or less than the actual travel costs incurred. A round sum payment may be regarded as remuneration for their service and may be treated as taxable by HMRC. If instead of paying the visitor out of pocket travel expenses it is decided to buy a gift as a show of gratitude then as long as the item was not expected and is of modest value (e.g. less than 50) then this is considered a business gift. The Head of Department engaging the visitor must sign off a completed expenses claim form. The amount paid for travel is not taxable Gift under 50 considered a business gift Does not need to be recorded on a P11D Does not need to be declared on a P11D 6.2.3 Self-Employed Visitors Where a visitor claims to be self-employed they must provide evidence of their self-employed status which should be passed to the Finance Manager along with details of the nature of the duties to be undertaken, dates of when the service is to be provided and an indication of the value, preferably before the event takes place. The Finance Manager will then consider the visitor s employment status and either request an invoice or process through the payroll. 17 P a g e

Dependant on the employment status decision, tax may or not be payable at this time Does not need to be recorded on a P11D 6.2.4 External Examiners/Interviewer/Invigilators Examiners will be treated as an employee and hence if they receive any taxable benefits these will be treated exactly the same as for any other employee. 6.2.5 Subsistence Payments to Visiting Foreign Academics Subsistence allowances can be paid to cover the expenses of unpaid visiting foreign academics where the individual performs no paid duties for the College. For periods up to 1 month For periods of over 1 month but less than 4 months A daily rate of 50 can be paid An allowance can be paid up to a maximum of 1,200 per month An expenses claim form must be completed and signed by the Head of Department or College Officer. As long as subsistence payments are within the limits specified above they are not taxable Does not need to be recorded on a P11D 6.2.6 Travel Expenses for Individuals attending Interviews Candidates may be reimbursed for expenses associated with attending interviews for employment at the College subject to the limits on allowances for mileage and subsistence. 18 P a g e

Either a cheque request or BACS payment request form should be completed detailing the amounts of the claim. These expenses are not taxable and do not have to be reported on the P11D 7. Entertaining 7.1 Business Entertainment Business entertainment is the provision of hospitality by employees of the College to non-employees in the furtherance of the College s business. This area of entertainment can present difficult issues both in respect of ethical issues and taxation and the following is intended to give procedures and guidelines which will help to decide whether the costs are allowable. Some costs may be allowable under the College policy, but will nonetheless give rise to a potential tax charge. The overall policy is as follows: Entertaining expenditure should wherever possible and appropriate be carried out in the College s own facilities This expenditure must be appropriate for the use of the College s money. A schedule must be included with the claim that gives details of those entertained, their institutions and the purpose of the entertainment. A tax liability will arise where there are more employees than nonemployees at an event. Such events must be disclosed on form P11D. Expense claims for entertaining, which must be supported by receipts, must be authorised by the Head of Department/College Officer. Authorisation and submission of any claim for payment of entertaining is a declaration that the cost was incurred wholly, necessarily and exclusively for College business purposes 19 P a g e

Further factors which must also be considered: The cost must be reasonable and will not normally exceed evening meal subsistence rates The primary purpose of the entertainment must be to entertain nonemployees (including students) i.e. the simple presence of nonemployees is not enough to justify a claim, their presence must be the main purpose of the event There must be a clear benefit to the College from providing the entertainment The entertainment should not include anything other than the provision of food, a modest amount of alcohol and any incidental costs such as taxi to the restaurant (i.e. theatre trips or corporate events such as golf or invitations to sporting events are not permitted) The definition of business entertainment will include meals with: External parties where the purpose of the meal is to recognise their contribution to the College (e.g. a meal given to thank examiners or an external speaker) Potential sponsors or donors Representatives of other institutions or bodies who are engaged in or contemplating collaborative work with the College Individuals where the purpose is to improve public relations Current sponsors or donors in the course of reporting progress Official visits Prospective students (or employees) Business entertainment will not include meals where: There are no non-employees present (such as a meeting of Heads of Departments or a meal held for a team as a thank you event, but see staff entertainment below) The entertainment of non-employees is not the main event (e.g. a department decides to have a meal together and invite along a visiting Fellow who happens to be in College at the time) There are non-employees present, but their presence does not further the College s business 20 P a g e

Reimbursement is made on an entertainment expenses claim form supported by all receipts. In all cases HMRC require full details of those entertained, their institutions and the purpose of the entertainment. Where there is a clear business benefit and the ratio of nonemployees to employees is equal or greater than one to one If the above is not the case, then where details of those entertained or the purpose of the entertainment is not provided - where the details of those attending are provided This is included in the College dispensation and therefore not reportable on the P11D The total cost is classed as a taxable benefit and attributed in full to the person making the claim The taxable benefit is apportioned across the individuals 7.2 Staff Entertainment There may be occasions when employees are provided with food whilst either at or close to their normal working place. Minimal expenditure such as for sandwiches provided at a working lunch may be ignored (provided that details are kept showing the purpose of the meeting). ** The College allows the following contribution per head for staff entertaining (within 150 per head HMRC limits) 2014/15 Staff Entertaining Allowance 38.00 Staff Christmas Party 38.00 These are reviewed annually. All claims for staff entertainment must be made on an entertainment claim form and have all receipts attached. The form must be signed off by the Head of Department and their respective College Officer and must fall within the College allowances for the specific entertaining category being claimed. 21 P a g e

Working lunches where lunch was an integral part of the meeting, cost is trivial and full details of reason and attendees are given Where a meeting has concluded and the attendees have lunch immediately afterwards No tax benefit arises and it is not reportable on form P11D Not part of the meeting so is taxable on each attendee and reported on form P11D Team building, away days and other similar events before any decision can be made on the taxable status it is necessary to establish exactly the format of the event, its purpose and attendees. Day long event which includes a meal If event is primarily just a meal Annual Christmas parties or functions of a similar nature, which are open to all staff and cost no more than 150 per head E.g. a retirement meal which is only open to specific individuals Meal is not staff entertainment as it is considered incidental to the rest of the event Fully taxable on all attendees unless open to all staff and within category of 150 per head (see above)** Exempt from tax and does not need to be reported on P11D** Taxable and must be included on form P11D** E.g. a retirement party that is open to all staff (and less than 150 per head) E.g. staff who helped at an Awards Ceremony (not paid) but taken out for a meal afterwards as a thank you Exempt from tax and does not need to be reported on P11D Taxable and must be included on form P11D** 7.3 Fellows Entertainment Allowances Allowances are available to all Fellows and Directors of Studies for entertaining directly in connection with their duties. These costs may arise from tutorial or supervision duties of students. The College will not reimburse any expenses for entertaining personal friends or colleagues where there is no business obligation to entertain them. These allowances are reviewed by the Finance Committee annually in June for the following academic year. 22 P a g e

All claims must be made on an entertainment expenses claim form with all receipts attached. They must detail in full the purpose of the entertaining and all attendees. The claim form will be checked against any outstanding annual allowance and paid accordingly. Fellows entertainment paid up to or within the entertainment allowance figure This is included in the College dispensation and therefore not reportable on the P11D 8. Other Benefits 8.1 Subsidised and Free Meals All Fellows are allowed free commons which may be taken as lunch or dinner, seven times a week. All staff are entitled to a daily allowance for meals in College. The amounts of these allowances are reviewed annually by the Finance Committee and the University Cards are used to record the amounts taken. Any meals purchased which exceed this allowance are charged to the individual for payment at the time of purchase. All meals up to the daily allowance College Feasts Non-taxable benefit and therefore not reportable Non-taxable benefit and therefore not reportable 23 P a g e

8.2 Mobile / Office Telephones The College pays suppliers direct for all business mobile and office telephone contracts. It would not normally expect to reimburse any employee for the use of their personal phone. Employees are strictly prohibited from using their business mobile phone for personal use and they should not be taken on holiday without prior approval of the Bursar. If there is an exception and the College does need to reimburse the employee then all invoices must be attached to a claim form detailing the amount of the business calls. No payment will be made for line rental or equipment. Should there be an instance where the employee does need to reimburse the College then VAT must be added to the reimbursement figure. Reimbursement of business calls This is included in the College dispensation and therefore not reportable on the P11D 8.3 Purchase of IT Equipment for Fellows The College is prepared to assist University Teaching Officer Fellows in the purchase of IT equipment. The term IT equipment in this context relates to any computer hardware and related software products, but excludes consumable supplies. The scheme is based on joint ownership of IT equipment for use by Fellows in their academic activities in the University or College. The College contribution is limited to 600, accumulating at the rate of 120 per year i.e. payment of 600 in year one will entitle the claimant to a further payment of 600 in year six. Under HM Revenue & Customs rules, the College owns the appropriate proportion of the IT equipment. On leaving the College, the Fellow may purchase the College s share of the equipment at its market value. 24 P a g e

College Teaching Officers and Research Fellows may apply for reimbursement of the full purchase costs of IT equipment up to a maximum of 2,000 on the understanding that the equipment remains the property of the College but may be purchased at its market value if and when the Fellow leaves the College. s Prior to any purchase of IT equipment the College s IT department should be consulted to ensure it is compatible and to keep a record of the new College asset. Fellows may request contributions for more than one purchase but within the ceiling ( 600 or 2,000). Evidence of purchase will be required with each application and these should be submitted on an expenses claim form. All requests to purchase IT equipment on leaving the College must be sent to the Bursar who will assess the appropriate market value. Proportion of the IT equipment belonging to the College Balance of the above proportion Purchase of IT equipment at market value Non-taxable benefit and therefore not reportable This can be set off against any Schedule D sources of income on the individual s tax return No tax or NIC liability due 8.4 Protective Clothing and Uniforms Protective clothing necessary for work is provided by the College under Health & Safety regulations. Uniforms are provided to certain departments. The College may make reimbursement for the cleaning, laundry and repair of protective clothing. 25 P a g e

s All purchases of protective clothing and uniforms must be through College suppliers and invoiced directly to the College. All items of clothing must have an appropriate un-detachable College logo. Claims for cleaning, laundry and repair of protective clothing must be made on an expenses form with all receipts attached. Clothing with un-detachable visible logo and cleaning, laundry and repair thereof Clothing without a logo and can therefore be worn at any time and cleaning, laundry and repair thereof Reimbursement of clothing purchased personally and cleaning, laundry and repair thereof This is included in the College dispensation and therefore not reportable on the P11D Taxable benefit and should be reported on form P11D Will be subject to both tax and NI. These will be deducted by payroll before payment and therefore will not need to be included on form P11D 8.5 Use of Vans The College does not make vans available for private use. Vans are not available for private use and so no assessable benefit should arise from its use and it will not have to be reported on form P11D. Note, however, that the following conditions must be observed for the vehicle to be eligible for treatment as a pooled van: It is available to and used by more than one employee and is not ordinarily used by any one of them to the exclusion of all others, and Any private use by any employee is merely incidental to its business use, and It is not normally kept overnight on or near the residence of any employee. 26 P a g e

8.6 Subscriptions Annual Subscriptions The College may meet the cost of subscriptions to professional bodies and learned societies where it derives a clear benefit from the employee s membership of such a body. Club Membership Subscription The College will not pay on behalf of, or reimburse to employees, the cost of any membership or annual subscription in respect of clubs or other organisations irrespective of whether the membership is used in the furtherance of College business. s Subscriptions will ordinarily be paid by the individual and reimbursed via an expenses claim form. The professional body must be approved by HMRC and all claims must be referred to the Finance Manager to be verified. Reimbursement of subscriptions to an approved body where it is relevant to the office of employment This is included in the College dispensation and therefore not reportable on the P11D 8.7 Books and Publications The College will make available to employees, books and publications which are necessarily used in the performance of the employee s duties and which are delivered and kept in the workplace. The Library is often able to purchase books and publications at discounted prices. Subscriptions to specialist journals & publications retained in the workplace This is included in the College dispensation and therefore not reportable on the P11D 8.8 Personal Purchases from College Suppliers Some College suppliers have agreed to offer College employees a special discounted price for their products. 27 P a g e

s Employees must purchase the items directly from the supplier (i.e. not through the College), receive the goods and the subsequent invoice and make payment personally to the supplier. Any disputes over the product are the responsibility of the employee and not the College. This is not deemed to be a taxable benefit 8.9 Eye Tests Any employee, who is a regular user of a VDU, is entitled to be reimbursed for the cost of one eyesight test per year up to a limit of 25. All claims must be made on an expenses claim form with all receipts attached. Payment of expenses as detailed above No tax arises 8.10 Trivial Benefits Tea & coffee provided to all staff should only be purchased through the Catering Department. This, along with any small gifts in recognition of a particular event (e.g. flowers for the birth of a child or illness), are regarded as trivial benefits and as such do not need to be reported on form P11D. 28 P a g e

CLARE COLLEGE APPENDIX A REFUND OF EXPENSES (please attach receipts) NAME (BLOCK CAPITALS) Department/Address Date Description Cost Centre TOTAL p Signed Date. 29 P a g e Authorised by Head of Department

CLARE COLLEGE REFUND OF ENTERTAINMENT EXPENSES APPENDIX B NAME (BLOCK CAPITALS) Department/College (Please select appropriate heading and delete all others) Date Nature of Event Number / Subject of Attendees Claim p Start of term : Introductory Meeting Mid-term review End of term review Individual tutorial / supervision meeting Other - please specify on reverse of form (Please attach all receipts) 30 P a g e

Signed. Date.. 31 P a g e

APPENDIX C The Finance Committee has agreed the following subsistence rates for meals and overnight accommodation from the 2014/15 academic year - Rates of Subsistence 2014/15 For part of a day including lunch 8.75 For part of a day including dinner 21.00 For part of a day including lunch and dinner 29.75 For Bed & Breakfast 99.00 For Bed & Breakfast (London rate) 130.00 The allowance for a complete 24 hours outside London 128.75 The allowance for a complete 24 hours in London 161.00 Allowance for staying with friend or family 25.00 32 P a g e